Melissa Bockhold Heather Coddington - Franklin College
Melissa Bockhold Heather Coddington - Franklin College
Melissa Bockhold Heather Coddington - Franklin College
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Copy of thank you note mailed to Alan Austin on 3/17/2006:<br />
Front: Inside:<br />
XI. SEAGATE TECHNOLOGY INTERVIEW<br />
Mr. Charles Pope, Executive Vice President and Chief Financial Officer<br />
Seagate Technology<br />
2725 Sand Hill Road, Suite 150<br />
Menlo Park, CA 94025<br />
Ph: 1-650-233-8149<br />
The following questions and responses collected through a phone interview with Seagate<br />
Executive Vice President and Chief Financial Officer Charles Pope at 6:00 PM<br />
Wednesday March 15, 2006.<br />
Question: How did you determine the value of your company?<br />
Answer: The market was valuing our company at $15 million. VERITAS and other<br />
companies were being valued at $22 billion. The market had too many<br />
discounts in place on our company evaluations. Some of the discounts<br />
included liquidity, market risk, and leakage.<br />
Question: How did Seagate and Silver Lake decide on the $2 billion selling price?<br />
Answer: We ended up settling for $2.05 billion dollars. It was a negotiated price.<br />
We set up a new corporation to acquire our assets and then teamed up with<br />
investors. The $2.05 billion was a purely negotiated value between<br />
Seagate’s board of directors and the team of investors.<br />
Question: How did you determine the capital structure?<br />
Answer: We understood the cyclical nature and the risks of our industry.<br />
Therefore, we knew that we needed lots of cash. Therefore, it is important<br />
to have as little debt as possible in order to whether the down cycles.<br />
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